Oil Price and Its Role in Domestic and Foreign Economy

Oil pricing, Iran's domestic economy, Iran's foreign economy, Iran’s oil products export

Authors

  • Fatemeh Pouri Master of management, Department of Commerce, Islamic Azad University, Malayer Branch, Malayer, Iran
  • Bamdad partovi Assistant Professor and Faculty Member of Economics Department, Abhar Branch, Islamic Azad University, Abhar, Iran
September 24, 2016

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The current structure of Iran economy like many other developing exporting oil countries as gradually formed over the past few years around the exchange earnings from the sale of crude oil and any changes in foreign exchange earnings from the exports of crude oil effect on other economic activities sectors, development plans and annual budgets, the most important role of the oil industry is to provide over 80% of foreign exchange earnings and therefore the undeniable reliance of various economic sectors on imports to meet its needs along with the reduction of foreign exchange earnings from the export of crude oil causes being unfavorable the exchange situation and thus reducing the intermediate imports and production decrease and also reducing the capital imports. The purpose of this study is to determine the effect of oil prices on developing the exports of Oil Products Distribution Company (Tehran). Statistical population includes all distributing petroleum products companies of Tehran. Since the population consisted of 12 participants and the researcher was able to investigate the population in census, therefore the sampling analysis has not been used. In this process, data analysis consists of two parts:descriptive statistics in which the calculations will be performed by using the SPSS software and in order to examine relationship between the variables, the EVIEWS Software will be used in this study. The data analysis results indicate that the oil price has a direct impact on export development and the hypotheses with significant levels of 95 % have been confirmed.